Growth Initiatives...

You want to grow your business alright. You want to be that
Leader who made an organization a success. Of course. Then
you understand that paying attention to growth initiatives is
essential in building an institution.

"A company must be viewed not only as a portfolio of
products and services, but a portfolio of competencies as
well." - Gary Hamel

Consider these...

• Have an uncompromising commitment to providing your customers with only quality products and services.
• Focus on measured implementation and consistent quality.
• Clearly define roles, accountabilities, and timelines.
• Be creative in finding ways to better serve your partners and their customers.
• Build an effective strategic customer program that leans toward increasing revenues and uncovering emerging needs.
• Devise a systematic program for forward planning, deploying, and reviewing innovations.
• A platform for strategic and operational planning with partners includes the following: setting up joint objectives, performance improvement targets, and an action plan and timetable.
• Explore more ways to provide WOW services for target customers.
• In marketing, there is value in being first. New, improved, or newly designed products or services give you a better chance to be a market leader. But keep in mind that it is as important to be a better provider of products and services.
• Focus on the value chain not on the product. Consider today's intelligent value-seekers. Customers want more value for their money. They want MORE for LESS.
• Go into niche marketing not too much on mass marketing.
• Dominate a larger customer mind share not market share.

If you are in business just because you do not want to be an
employee; if you are in business only to earn a living -- then
you are really just an "ordinary employee" in disguise, so why
not just sell peanuts on the side walk? It's a challenge only
achievers could grasp... whether as an entrepreneur or a top
caliber employee.

An achiever is a dreamer... a dreamer who is not afraid to
dive; a diver who not afraid to swim; a swimmer who
understands risks, thinks of possibilities, and realizes that
courage is what really matters to achieve greatness.

Take note...
"Companies pay too much attention to the cost of doing
something. They should worry more about the cost of not
doing it." - Philip Kotler

Keeping Customers For Life... Part III

"All business, from potato chips to washing machines to jet
engines, is about selling to people." - Tom Peters

Those words is a fact that good marketers understand and thus,
develop strategies to reinforce preference for their brand,
product and service. Keeping customers in your stable now
boils down to analysis, planning and execution.

Yes, most have heard of loyalty programs but then, not all
realizes that its effectiveness really depend on the support of
management, the brains of its leaders and the hands of its
employees. More than just your product, you need a concerted
effort to constantly deliver a good impression to your
customers.

Understand that you do not have to wait for your customers
to tell you to serve them well and better than others to stay
long with you. You got to anticipate their needs and provide
your customers with easy steps for them to do repeat business
with you. These should be simple and cost-effective ways of
acknowledging valuable customers who seek and appreciate
emotional benefits from enhanced self-esteem, distinction, and
customer status.

"Once all the surviving contenders in a market can offer value,
the battle shifts to speed and innovation. To distinguish
themselves, companies must offer something unique."
~ Noel M. Tichy

Yet remember, more revenues from customers do not always
mean profit is better. Knowing who your most profitable
customers are and increasing their number will profitably
sustain your business. Customer satisfaction is for all your
customers. Customer loyalty is for your most profitable and
valuable customers. Therefore, be strategic in allocating your
resources in a way that will best serve and grow your highly
profitable and volume-generating customers.

Here are some tips...

Evaluate priorities and allocate resources accordingly based on
the following:

• How customers contribute to total profitability
• Significance of customers to the total business or in terms of their business size relative to the overall business
• Potential for future growth or any customer expansion plans

Evaluate overall cost of doing business with a customer to sustain
profitable relationships. Breakdown the cost of doing business
through the following:

• Discounts or payment terms extended to them
• Customer promotions

Other ad hoc or temporary support extended such as:

• Volume discounts
• Additional manpower
• Operational subsidies
• Administrative and selling costs

In the end, it is your reputation for doing business that will
carry you through... and keep your customers for life.

Take note...
"We don't know how to sell products based on performance.
Everything we sell, we sell on image." - Roberto Goizueta

Keeping Customers For Life... Part II

"When you are skinning your customers, you should leave
some skin on to grow so that you can skin them again."
- Nikita Khrushchev

This was quoted by the Observer (London) when Khrushchev
addressed British businessmen. Well, it may sound a bit harsh
specially for those who are racist but in a positive sense, it's
actually true. Look, we want to keep customers for life; but,
how could they keep coming back to us if we drain them?
Hence, we got to take care of our customers... sincerely. Let
them feel valued while continuously improving on our products.

Redesign, reshape and re-engineer product offerings, services,
and messages to individual customers. Design market offerings,
services, and prices that have more emphasis on customer
retention to rebuild a longer customer lifetime value.

Reduce the rate of customer defection by hiring only
knowledgeable and well-trained employees, if not those with
high learning ability and enthusiasm. Deliver total customer
satisfaction through better and faster services than
competition.

Enhance customer bonding by way of (a) frequency and
rewards program to customers who buy more often and in
substantial amounts and (b) individualizing and personalizing
customer relationships, turning customers into clients.

Build profitable customers through "share of wallet", cross
selling and up-selling... then you could capture a substantial
share of your customer's expense budget.

"If you love your customer to death, you can't go wrong."
- Graham Day

Provide special treatment to your most valued customers.
Treat them like they are the only customers alive on earth,
send them personalized birthday or wedding anniversary
greetings, small gift tokens, or invitations to special events,
concerts or shows.

Yet realize that looking after your customers is more than
satisfying them or filling their hearts -- it's helping them grow
their business. That is what "skinning and leaving some skin"
is all about!

Take a bank for example. Safekeeping is not the only reason
why people deposit their money but interests and other
financial services. See, they help each other. A bank grows
from its client's money and at the same time, so does the client
from the bank's expertise.

More so, at a different setting, once you have successfully built
that win-win relationship, it would be more easier and natural
to seek your customer's help and support in the design of new
products or in improving total customer service.

Lastly, again, customer satisfaction is for all your customers
but customer loyalty is for your most profitable and valuable
customers; so learn to identify and build on them.

Take note...
"Markets are not created by God, nature, or by economic
forces, but by businessmen." - Peter Drucker

Keeping Customers For Life...

In our previous articles, we talked about customer loyalty; and
for this one, we would continue to dig deeper into the world of
customers.

As we all know, trust is key in building and maintaining customer
loyalty; yet, would there now be room for complacency once trust
has been "firmly" established?

Wait. Established? Is there such a word? See, complacency is
never even a thought for those who wish enduring success. If
you allow such, you would certainly lose ground.

"There's no resting place for an enterprise in a competitive
economy." - Alfred P. Sloan, Jr.

Great business leaders never rest on their laurels. They think
continuously on finding ways to delight customers. They work
harder to build customer lifetime value.

Oh, what is this customer lifetime value again? It is a measure
of the value of a customer to your business. It is the potential
contribution of the customer to your business over a period of
time. It is the "answer" to the question of how much a customer
would spend for your product or service in the course of a life
time.

"He says, 'when I see a frown on a customer's face, I see
$50,000 about to walk out the door.' His good customers buy
about $100 worth of groceries a week. Over ten years, that
adds up roughly $50,000. We all agree that repeat trade is
the key to business success." - Tom Peters

Hence, when confronted with a difficult customer and you need
to be motivated, think about all the money that he could spend
with you in the course of a lifetime.

Remember, some customers can be difficult. They maybe
unhappy at something specific. Others maybe unsatisfied with
nearly everything. So, here then are some guidelines for dealing
with difficult customers...

• Do be clear, specific, and straight to the point.
• Do be prepared and organized. Anticipate and be proactive in answering inquiries.
• Do stick to business. Demanding customers are not interested in small talks.
• Do ask specific questions, i.e. "May I know what exactly is the problem with your Senior Citizens' Purchase Card, sir/ma'am?"
• Do provide a choice of options.
• Don't ramble, theorize, or engage in small talk. Get to the point.
• Don't be disorganized. Demanding customers don't have patience for incompetence.
• Don't leave any loose ends. Present to demanding customers an outright solution to their problems.
• Don't ignore the customer's presence or his anger.
• Don't put the blame on the customer or shift the blame to another office.
• Don't refer him to other offices without listening to and determining the problem which can be solved by your office.

As for angry customers...

• Recognize the presence of the customer by greeting him and making him feel comfortable.
• Listen attentively. Do not interrupt him while he is talking.
• Paraphrase the customer's concern to ensure proper understanding of the problem.
• Emphatize with the customer by saying, "I understand how you feel" or, "I can see your point."
• Offer to help, "How may I help you?"
• If the solution recommended by the customer is not possible, offer alternatives.
• If the solution is acceptable, apologize for the inconvenience of the customer.
• Keep your cool.

Take note...
"There is only one boss: the customer. And he can fire everybody
in the company, from chairman on down, simply by spending
his money somewhere else." - Sam Walton

Building Customer Loyalty... Part III

In building customer loyalty, you have to understand how
relationships work; and like great wine, great relationships get
better with time. Yet remember, credibility and Itrust are built
slowly. You can not rush it. And don't expect miracles. When
dealing with tough and difficult customers, don't expect overnight
results. Customers want you to prove to them that you know
what you are talking about and you understand their business
and problems -- and only then will they listen to you.

Customer loyalty is the practice of finding, attracting, and
retaining your customers who could purchase from you. See,
many think customer loyalty is also customer satisfaction; but
they are not the same thing. When you think of having good
business practices, customer satisfaction is the main requirement
and the entry point. Customer satisfaction is for "all" your
customers. Customer loyalty is for your most valued and
profitable customers.

"An ounce of loyalty is worth a pound of cleverness."
~ Elbert Hubbard

So, what do we do? Have a program. Understand that systems
makes us efficient and responsive to customer wants. Systems
allow us to do the job right the first time.

Now with this in mind, realize that the objective of a loyalty
program is to deepen the customer relationship by offering
relevant rewards and incentives to reinforce the brand, service
or company. A successful loyalty program must consider the
customer's usage behaviour and attitudes toward the product
or service and even the company.

A loyalty program can help differentiate your brand, and
provide customers reasons to stay loyal because there are
rewards they can count on.

Still the question is... does it really work? It's all in the execution.

Hence, before you start giving out those rewards and incentives,
consider the costs of developing your program; and these include
not only discounts but operational expenses as well. Bear in
mind that successful loyalty programs are business and brand
strategies to induce sales.

And just like networking, in loyalty programs, you got to develop
a connection. A deeper connection means greater loyalty and
more customers immune to competitors. And as in networking,
don't simply start and end your link with an "invite". Look out
for each other.

"Complexity and trust go together... the more firms downsize
and outsource, the more they need partnerships, alliances, and
joint ventures." - Peter Keen

Loyalty is about long-term, win-win relationships. It's now a
matter of identifying and developing your most profitable
customers.

Take note...
"Customer loyalty begins with customer satisfaction but
only develops with continuous delivery and care."

Building Customer Loyalty... Part II

"Trust... is the foundation for innovation and coordination of
the supply chain, customer interaction, and market, product
and service development." - Peter Keen

Trust precedes attachment. And so it goes with customer
loyalty. Fulfilling the basic promise of your product is the entry
point to "customer satisfaction".

Nevertheless, nowadays, customer satisfaction only gets you
to play the game, like a buy-in to play in a poker game. This is
simple yet an often overlooked requirement for customer
satisfaction. If a product is to be delivered, it must arrive on
the customer's specified or expected time in "perfect quality"
condition; and most importantly, it must fulfill the benefits
promised by the product or service.

"You achieve customer satisfaction when you sell
merchandise that doesn't come back to a customer who does."
~ Stanley Marcus

Now imagine your customers are delighted enough to tell their
friends about your product or service. That's what actually
happens when we do a real good job for customers, they tell
their family and friends about it. As we know, it's called
"word-of-mouth" advertising, more effective than anything
seen on television. And see, it all starts with "walk the talk".

Does it all end there? Not if you want to end your business.
Hence, realize that it's not enough to satisfy customers -- you
need to find them, attract them, and retain them. That's what
customer loyalty is... "retain" them. Meaning, work for a long
term, win-win customer relationships. Understand that winning
big deals for the day, week or month will neither guarantee a
sustainable competitive advantage nor ensure survival and
long-term growth. At the same time short-term success, in
terms of sales or revenues, market growth rates, market shares
and profitability, are no longer seen as highly significant
marketing efforts.

Overall marketing initiatives are now directed toward
customer retention and loyalty; so it's essential to build a
community of loyal customers, some even unconsciously
behaving as product endorsers for business to thrive and last.

"In business you get what you want by giving other people
what they want." - Alice Foote MacDougall

How far does customer loyalty serve us?
Well, when a customer is loyal, he maybe dissatisfied at one
time yet he will choose to stay on with the business. Loyal
customers are more forgiving of service shortcomings that
they would still choose to purchase your products and avail of
your services -- thus never let your guard down.

Keep working on your products and services while building
on those relationships. Remember, cash registers would only
keep ringing if you give that extra effort... continuously.

Take note...
"Customers can be satisfied but not necessarily loyal.
Satisfaction is just a moment; Loyalty is almost timeless."

Building Customer Loyalty

Once we have built a memorable customer experience, this
customer would certainly want to experience it again. This now
would signal the start of customer loyalty. So, keep trying to
find ways to be on top of the customer's mind... always.

Keep going that extra mile.

Do not charge your customer for the extra service. Your
company can take care of it. Sometimes you would even have to
charge it to your personal account. That is something you would
do to a friend. You just have to think that what you have given
out would come back to you a hundredfold.

"Your employers does not control the sort of service you
render. You control that, and it is the thing that makes or
breaks you." - TLOS

Are customers always right in their requests?
To a certain point -- when the customer's request is related to
business. Just remember, we are here to help him, so apply
flexiblity. This must be resonate throughout the company.

Empower your team to satisfy customer requests on the first
call. Authorize your people to waive annual charges and finance
charge, give a free cake for customers celebrating their
birthday, and offer upgrade to frequent customers. Provide
your reps, agents, or staff a list of what they can offer. On
occasions when a customer is genuinely upset over a service,
have your staff in the front line of your customer service
recovery program.

Aside from offering deep discounts and forking promotional
money to your demanding customers, create value in other
non-monetary ways. Allow them the convenience of having
their problems solved by offering them your time, effort, and
other resources within the company's disposal.

Have your salesperson invest in the one asset which no
psychological gimmicks, incentives or special rewards can
replace... TIME. It's you they want to hear advice and
suggestions from, it's you and your time they want when they
have business, product or service concerns.

However, if the salesperson is not around to serve his
customers, make sure somebody could pick up the slack. You
should have a system for this. Realize that it makes a lot of
difference for the client when another person attends to their
needs in the absence of whom they seek.

Before you can build and maintain a customer’s loyalty, you
have to gain his trust. Doing what you are supposed to do
when you are supposed to do it is the minimum requirement to
provide good customer service.

Take note...
"Time to repair the roof is when the sun is shining." - JFK